So 19 people playing or less and no lag and 20+ and always lag and ONLY on the Laptop you see this? How much system Ram does laptop have, maybe the 20th person to keep track of x,y,z coordinates is at your laptops memory limit. Do you run desktop gadget on windows 7? I use CPU/Ram meter on mine with a timeline so that if I have weirdness I can hit windows key and look at timeline of Ram and CPU usage to see if it was at 100% etc. Most laptops these days share system Ram with video GPU needs, so you might be running at 100% and lag is your system then failing to stay in synch with the serverside clockwork of the game.
I know that my Toshiba Core 2 Duo 1.8Ghz and GeForce 7300 running XP on 1.5GB Ram to play World of Warcraft lags out when I get into populated areas with lots of people, yet my desktop tower computer a Athlon II x4 2.6GHz quadcore with ATI Radeon 5450 HD 1GB DDR3 Video Card, and 3GB DDR2 system Ram just about never lags out in cities that are crowded. My dualcore CPU on my laptop is at 100% and Ram is 90% consumed by the game, and the GeForce 7300 Mobile is breaking a sweat playing the WoW v5.0.5 on lowest video settings. The bandwidth meter in the game also climbs to around 250ms in cities and back to 30-40ms in lesser populated areas. I figure that this is being caused by the delay in my game client to maintain the sync with the server because my laptop is sort of trailing behind in communications since the CPU is running full bore.
Some questions:
How much Ram?
What CPU?
Are you running a desktop gadget to monitor Ram and CPU usage so you can see if its hitting 90+% when running game with 20 people connected etc? ( use windows key to switch back to desktop and keep game running, you will see usage dive when doing this so you will want a timeline type gadget running or you wont see real figures of stats while running )